Nvidia's Stock Hasn't Been This Cheap in Nearly a Year. Here's What History Says Happens Next.
Nvidia's (NASDAQ: NVDA) stock isn't cheap all that often, and any time it has sold off over the past few years has been an incredible buying opportunity. Right now, Nvidia is still well off of its all-time high thanks to the scare caused by DeepSeek's revolutionary artificial intelligence (AI) model, which was reportedly trained more cheaply than most U.S. models. The prevailing fear is that not as much computing power is needed to train AI models as once thought, which would harm Nvidia's business.While there is some merit to this thinking, I don't think it's accurate, as the spending projections from some of Nvidia's biggest clients keep increasing. As a result, I think history will repeat itself, making right now a fantastic buying opportunity for Nvidia's stock.Nvidia has been dominant over the past few years because it is powering a large chunk of the AI innovations. Its graphics processing units (GPUs) can process calculations in parallel, which makes them far more useful for intense workloads like training an AI model. Furthermore, when companies buy a GPU, they don't buy just one or two; they buy thousands and connect them in clusters, further amplifying their computing power. Nvidia's GPUs have become the top pick for anyone in the AI field, as its results back it up.Continue reading
Nvidia's (NASDAQ: NVDA) stock isn't cheap all that often, and any time it has sold off over the past few years has been an incredible buying opportunity. Right now, Nvidia is still well off of its all-time high thanks to the scare caused by DeepSeek's revolutionary artificial intelligence (AI) model, which was reportedly trained more cheaply than most U.S. models. The prevailing fear is that not as much computing power is needed to train AI models as once thought, which would harm Nvidia's business.
While there is some merit to this thinking, I don't think it's accurate, as the spending projections from some of Nvidia's biggest clients keep increasing. As a result, I think history will repeat itself, making right now a fantastic buying opportunity for Nvidia's stock.
Nvidia has been dominant over the past few years because it is powering a large chunk of the AI innovations. Its graphics processing units (GPUs) can process calculations in parallel, which makes them far more useful for intense workloads like training an AI model. Furthermore, when companies buy a GPU, they don't buy just one or two; they buy thousands and connect them in clusters, further amplifying their computing power. Nvidia's GPUs have become the top pick for anyone in the AI field, as its results back it up.
